AmWINS Group Inc. said it acquired The American Equity Underwriters Inc., a national provider of insurance programs for maritime employers with a special expertise in U.S. longshore and harbor workers compensation insurance. Term of the deal were not released.
The Charlotte, N.C.-based wholesaler announced plans to acquire the Mobile, Ala.-based American Equity Underwriters in early May.
American Equity Underwriters has over 50 employees in its three locations: Mobile, Ala., New Orleans and Houston. The firm is licensed in all states and serves as a program manager for Bermuda-based American Longshore Mutual Association Ltd.
In connection with the acquisition, AmWINS said it entered into a new $432.5 million credit facility arranged by Wachovia Securities and Madison Capital.
Proceeds of the new facility were used to complete the American Equity Underwriters acquisition, refinance AmWINS' existing credit facilities, and to fund a $100 million dividend to AmWINS' existing shareholders, comprised primarily of AmWINS employees and Parthenon Capital, a San Francisco and Boston-based private equity firm, the firm said.
AmWINS added that the new credit facility will provide it with additional capacity and flexibility to fund new strategic acquisitions.
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